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HF 2638

Ramsey; sales and use tax exemption for construction materials modified.

2025-2026 Regular Session Introduced by Harry Niska and 1 co-sponsor

HF 2638 would grant a sales and use tax exemption for modified construction materials in Ramsey, lowering upfront costs for projects and impacting suppliers, contractors, and buyers.

Introduction and first reading, referred to Taxes
#citiesandtowns-specific #taxation-salesanduse
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Bill Summary · HF 2638

Summary of HF 2638 (Ramsey; sales and use tax exemption for construction materials modified)

Overview

HF 2638 is a Minnesota bill introduced on March 24, 2025, that proposes a sales and use tax exemption related to construction materials modified in Ramsey. The bill has been introduced and referred to the House Taxes Committee. A companion bill exists in the Senate, SF 1981.

Purpose and intent

  • The primary aim, as indicated by the title, is to create or modify a sales and use tax exemption for construction materials that are modified. The geographic focus is Ramsey (presumably Ramsey, Minnesota).
  • The objective appears to be reducing the tax burden on modified construction materials used in building or remodeling projects within Ramsey, potentially to stimulate construction activity or redevelopment in that area.

Key provisions (as implied by the title)

  • Establishment of a sales and use tax exemption applicable to construction materials that have been modified.
  • The term “modified” and the scope of materials, eligible projects, and any conditions would be defined in the bill’s text (not provided in the summary you supplied). Specific eligibility criteria, protections against abuse, and any sunset or renewal provisions are not specified here.
  • The exemption would affect the tax treatment of applicable purchases, presumably removing the state (and any applicable local) sales/use tax from those transactions for qualifying materials.

Affected parties and impact

  • Likely affected: construction material suppliers, contractors, developers, and property owners purchasing modified construction materials in Ramsey.
  • Potential effects: reduced upfront costs for projects meeting the exemption criteria; potential impacts on state and local tax revenues if the exemption is broad or temporary; possible administrative requirements for sellers to verify eligibility.
  • Local focus: the bill targets Ramsey, which could mean it applies within that municipality or to projects located there, depending on the enacted text.

Procedural status and timeline

  • Introduction and first reading in the House on March 24, 2025.
  • Referred to the Taxes Committee.
  • Companion bill exists: SF 1981 (Senate).
  • No further actions are listed in the provided information; typical next steps include committee hearings, potential amendments, and floor votes in both chambers, followed by reconciliation and enactment if approved.

Notes for readers

  • The exact definitions (what qualifies as “modified,” which materials are covered, project types, eligible recipients, effective dates, and any sunset provisions) require the bill’s full text.
  • For detailed and up-to-date information, consult the Minnesota Legislature website to access the bill language, fiscal note, and scheduled committee hearing dates.

Compiled from official sources — confirm details with the bill’s official record.

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